Tender process for Rottnest

Developers are eagerly eyeing a rare opportunity to develop an iconic hotel on Rottnest Island, amid concern from some visitors for the future of one of Western Australia’s favourite family playgrounds.

Through its Landbank initiative, Tourism Western Australia has earmarked a four-hectare site on Mount Herschel at Longreach Bay for a 120-room fully serviced hotel, which the Rottnest Island Authority expects will ease its financial burdens and attract more visitors.

RIA chairman Laurie O’Meara said the authority would choose a development proposal that is sympathetic to the fragile habitat, infrastructure and ethos of the island.

“We would like the development to echo the high-standards of the Ningaloo Resort and are looking to offer a 21-year lease to an operator with the right credentials and financial capacities in place,” Mr O’Meara said.

Environmental and sustainability guidelines have dictated the new development must be kept to a two-storey height limit and be of low impact to the surrounding A Class nature reserve.

Mr O’Meara acknowledged that finding accommodation on Rottnest was a problem, particularly during peak holiday periods but the RIA was also concerned with the effect of low occupancy rates on the island’s businesses during winter.  

“If this hotel can attract more people to the island during winter then the other businesses on the island will benefit,” he said.

The RIA plans to assess the development on how well it integrates with other facilities and the extent to which it encourages guests to explore the island.

Mr O’Meara said conference and meeting facilities geared towards the corporate market must be catered for within the development as it wanted the island to be recognised as a destination for corporate groups as well as families and couples.

Rottnest Society chairwoman Sue Foulkes said it was concerned that the nature of the Rottnest experience would change, so it was important the RIA defined its target market.

“We want to see our kids and future generations enjoy a similar experience to us, by limiting our impact and leaving as much technology behind as possible,” Ms Foulkes told WA Business News.

The society also feared the hotel would require extra vehicle movements between the settlement at Thompson Bay and the new hotel, potentially transferring up to 360 visitors a day.

Ms Foulkes said the society would like to be convinced the hotel would have a positive impact, but she thought increasing visitor numbers in winter was a tall order considering the island was at the mercy of two to three “howling gales” during the winter season.

She recognised the RIA was experiencing financial difficulties and was under pressure to complete upgrades but warned, with additional expenses, the hotel may not be the money spinner the RIA hoped.

At present, the RIA has been running the island at a loss and is only half way through a $7.4 million upgrade of existing accommodation.

As part of its strategic financial plan, the RIA wants to engage a developer for the hotel within the year and secure a 10-year lease holder for the Quokka Arms pub.

A selection panel of 12, comprising representatives from the RIA, Tourism Western Australia, Department of Treasury and Finance, LandCorp and a government architect, will choose a short-list of preferred hotel developers after July 28, with the RIA board having the final word on the successful tender.